President of Growth Enhancement Scheme Agro-dealers Association of Nigeria (GESAAN), Mr Kabiru Umar Fara, in this interview with JOHN OBA, spoke on the effects of GES on Nigeria’s agricultural development.
How is the association doing under your leadership?
I saw a vision when I was a commercial manager with Notore Chemical Industrial Limited, I saw in the market that these dealers are not coordinated. This is a huge market and I have not read anywhere where such large group have no organisation. Where everybody is on his/her own.
The agro-dealers, farmers, everybody on his own and they are not talking with one voice, so with the help of some people, we began to train the agro dealers and brining them together to form an association, so that when we are strong we can have many advantages. They can approach the banks as an association, access federal government intervention funds as an association under single digit. All these were missing before.
Having said that, opportunity came and in 2013 while still working with Notore, dealers were appointed to manage centres for and give farmers incentives in this intervention. So when I resigned from Notore, I also joined with my company to do farmer’s intervention at their centres.
This is purely federal ministry of agriculture’s creation on how to reach farmers and get very good quality input like fertiliser, seeds and chemicals to farmers.
Now we have over 1300 dealers appointed nationwide with more than 3000 centres. Now the work of the agro-dealers association’s members is to attend to farmers at their registered centres.
The farmers come to receive government interventions with their quotes, and the activator on the phone that is the e-wallet system, when it is activated, the farmer pay his due and pick his fertiliser.
When we started, fertiliser was N5500; the farmers paid N2750 per bag, for two bags which amounts to N5500, and pick two bags. Also the seed is there, originally it was free, later when people started abusing the privilege, government add N250 for about12kg. That too comes through the agro-dealers, because they are the ones operating the centres. The chemicals also are deposited with the agro-dealers, so that farmers who want to buy chemicals can buy through the agro-dealers, later the agro-dealers balance the seed suppliers and get their commission.
So what multiple effects will this have on the current GES implementation?
Another burning issue in Nigeria now, is a discuss on GMOs crops, since agro-dealers are major players, what is your position on this?
Well even human beings are transforming, and things are changing, and we cannot stop that. The rate of population growth is alarming. So if we don’t go with the improved seeds, we may not get the require food to sustain the population. As far as I am concern, developments are going faster and we must do something very fast too. Safe seed is excellent but cannot give us the desired results and yield to sustain the population.
But as agro-dealers, are the seeds available in the Nigerian markets?
Prior to the introduction of GES, the seeds mostly used were safe seeds, but GES has brought up many seeds companies, who were encouraged to go into seeds production. So there are lots of improved seeds in production because of the GES, since government came in to support, there was high demands of seeds which give rise for it productions.
As an association, what are the challenges you are faced with?
There are challenges. First the association is just about one and a half years old and our members are known because we are agro-dealers under the GES, that is why we are called Growth Enhancement Agro-dealers Association of Nigeria. That tells you that unless you are agro-dealers under the GES, you are not a member. Though, there are other agro-dealers providing inputs that are not under the GES.
Other challenges are finance; lack of membership licensing. Association under the agricultural value chain are fragmented and we want the ministry to champion our coming together as one body, so we can speak with one voice and access facilities as a body from international donors.
There are lots of facilities under agriculture to be accessed from international donors but we are not enjoying them because we are not strong enough to access them. So after this year GES is rolled out, we are going to work with the ministry of agriculture to form one big association. We can maintain our small associations under one large umbrella.
Another challenge is the understanding of our role by the ministry of agriculture and the federal government.
They still refer to us as middle men. We are not middle men, because we finance our supplies because apart from GES, most of the products we buy from producers, we have to pay the money first because if one kobo is short from your money, they would not even rise your order and sometimes when you paid, the supply of your products takes two months, that means you are the one financing the production of your goods.
Your members also deal in agro-chemicals, are there ways to regulate their activities?
We are working on that. In fact right now, there is a bill sponsored by the ministry to regularise GES activities and there is another to take care of marketing inputs in Nigeria. So we need to work hard to ensure that those bills are passed into law. We are working on temporary licensing of agro-dealers some specific period. After which, the permanent licensing can be given to dealers.
What is your counsel to the government on agricultural financing?
Well, even though the government has beautiful thoughts and plans, it should be back up with actions. If farmer are to get funding in single digit, the government must be fast at repositioning the bank of Agriculture, so that it can have several branches and be well funded. Let farmers be sensitised on how that can access capital. Input providers should be funded to make cheap inputs available for farmers. There is on where in the world where bank charges on agriculture is above 20%. They are below two or three per cent interest. Nigeria can even start with 5%.
Since the government is diversifying into agriculture, the sector should be supported with adequate financing.
I know there are lots of money in the CBN to support but Nigerians need to be sensitized and it should made accessible.
Also the government should encourage mechanized farming and should introduced different package under the scheme for big farmers. Because they need more than two bags of fertilizer. They could help on how to export their products outside the country and they should help to access facilities at cheaper rates. So if these are take care of, there are chances that we will meet our food demand. Investors should be encouraged to invest in agriculture, like Dangote is doing now in Nigeria.
